RLF - Astarta modernisation capex

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The Project comprises financing of essential capex and working capital needs of the agro-industrial holding "Astarta-Kyiv" ("Astarta" or "Astarta Group").

Project ID 54149

Status Repaying

Location

Ukraine

Business Sector

Food and Agribusiness

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Ms. Yevheniia Pyrih
credit@astarta.ua
+38(044) 585-94-09
https://astartaGroup.com/en/
04071, Kyiv, Yaroslavska str. 58

Project ID 54149

Status Repaying

Location

Ukraine

Business Sector

Food and Agribusiness

Notice Type

Private

Environmental Category

Approval Date

26 Apr 2023

Disclosure date

16 Jun 2023

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

RLF - Astarta (Ukrainian) (PDF, 0.07MB)

Project description

The Project comprises financing of essential capex and working capital needs of the agro-industrial holding "Astarta-Kyiv" ("Astarta" or "Astarta Group").

Project objectives

The Project will support Astarta in financing its essential capex related to modernisation, energy efficiency and environmental improvements of existing production facilities and introduction of climate smart agricultural practices to increase business resilience, as well as working capital needs associated with farming, sugar and soybean processing activities of the Group.

Transition impact

ETI Score:70

>Primary Quality Resilient:

The Project will increase the Group's resilience and will help to sustain its operations and keep production volumes and export, which are essential for food security and for commodities availability for the next seasons.

Secondary Quality Inclusive:

The Project will help to preserve Astarta's human capital and the livelihoods of its employees as well as partner companies across Ukraine that the Group cooperates with throughout its supply chain.

Client information

TSUKORAGROPROM LLC

Astarta is one of the largest vertically integrated agro-industrial Groups in Ukraine operating five sugar plants, soybean processing factory, ca. 220 thousand ha of leased arable land and a dairy farm. Since 2006 the Group has been listed on the Warsaw Stock Exchange.

EBRD Finance Summary

USD 21,000,000.00

The Project includes financing of up to USD 21 million equivalent for the EBRD's account and up to USD 9 million sustainability-linked loan for the account of the Clean Technology Fund.

Total project cost

USD 419,500,000.00

The Project comprises financing of the essential Capex of USD 24.5 million and a portion of the estimated peak WC needs of USD 395.0 million.

Additionality

Additionality stems from the following:

Terms: As a result of the war on Ukraine, the market for financing in Ukraine is very limited. EBRD financing effectively bridges a financing gap left by the withdrawal of commercial banks finance. The loan will have concessional finance component funded by the Clean Technology Fund, which is linked to improvements in corporate climate governance, adoption of precision, soil conservation and agro-ecological agricultural practices in Astarta's farming operations.

Conditionalities: EBRD credit, transition impact and environmental related conditionalities go far beyond what commercial funding sources would require. As part of a technical assistance assignment with the EBRD, Astarta is developing its corporate climate change strategy, which includes a decarbonisation and climate change resilience pathway.

Environmental & Social Summary

Categorised C (2019 ESP). The environmental and social risks associated with the provision of working capital and the modernisation and maintenance of existing sites are not expected to be significant. Astarta's environmental and social impacts and corporate management systems are well known to the Bank from the previous transactions. Due diligence for this transaction was carried out via an environmental and social questionnaire and a review of the Group's EHS policy and procedures.

Astarta is one of the largest integrated agricultural companies in Ukraine, with activities covering grain, sugar and dairy farming. Astarta is operating in line with the applicable EBRD Performance Requirements. The Group has an integrated labour protection, industrial safety, environmental protection and energy management system. The EHS management systems are in line with ISO 14001 and ISO 45001 standards. Collective agreements are in place between the Group and the trade unions. Astarta's environmental and social performance on other EBRD projects has been good, the ESAP agreed for previous transaction has been implemented and the Group provided comprehensive E&S reports. The ESAP for the Project have been agreed for reporting on implementation of a climate strategy and the development of a management plan to address heat stress risks. The Bank will continue to monitor the environmental and social performance of the Group via annual reporting, including tracking of indicators related to the GET attribution.

Technical Cooperation and Grant Financing

TC: Legal due diligence cost will be covered by the Japan-EBRD Technical Cooperation Fund.

Non-TC: The EBRD loan is approved on the basis of first loss risk cover funded by EBRD Crisis Response Special Fund, Netherlands Ukraine Response Platform Individual Sub-Account.

Company Contact Information

Ms. Yevheniia Pyrih
credit@astarta.ua
+38(044) 585-94-09
https://astartaGroup.com/en/
04071, Kyiv, Yaroslavska str. 58

PSD last updated

16 Jun 2023

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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RLF - Astarta modernisation capex

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)